The day you choose your first investment property, you are making MANY other immediate choices as well.
LOCATION determines what type of tenant will be interested in the property. Better area, and nicer home, typically draws a higher caliber tenant. Better FICO scores, better overall profile, and more APPLICANTS FROM WHICH TO CHOOSE.
Better location usually means paying more for your investment initially, but it is much easier to recover your initial output when a higher quality renter helps keep your rent-ready costs down when you do have to prepare for the next tenant.
Your new higher caliber tenant is generally interested in keeping your desirably-located property in good condition and staying longer than just twelve months. What this means for you is fewer fees paid and more money in bank – growing your investment at a faster pace.
Consider this, if you pay a little more for the property in better overall condition, in an excellent area, with more amenities, including great schools, nice play areas and shopping close by, for the most part, it means when the market turns to SELL instead of buy and hold, you will have a much more ATTRACTIVE PROPERTY TO MARKET which WILL APPRAISE HIGHER, resulting in greater overall return on your investment.
A better LOCATION means you can CHARGE A HIGHER RATE OF RENT per month on your investment property. This is going to procure a better tenant with stronger work history, increased FICO score, more acceptable criminal background checks and fewer judgments, establishing a longer-term partnership with you and a tenant who will HELP TO KEEP YOUR PROPERTY ATTRACTIVE. Ideally, this partnership will benefit your tenant as well – a better standard of living, pride in their living space, working to better their situation.
In this business, we find that a better location with a nice home is rented very quickly. A quality property, which is rent ready MAY be on the rent boards only three weeks once it is ADVERTISED and MARKETED to the public. It is not uncommon for us to have applications on a property while we are cleaning or doing the rent ready work, if it is a nice home in a good location and priced right for rent. This means the investment has LESS TIME SPENT VACANT.
Who manages your property is a big choice. It is important to work with a competent property management/investment company that is full circle in its business strategy. Commit to a partnership which will result in your property being rented as quickly as possible by a highly qualified tenant. Honest feedback and relevant market information work together toward greater return on your first and future investments.
1. BETTER LOCATION
2. BETTER PROPERTY (RESALE)
3. BETTER TENANT(FICO AND BACKGROUND)
4. MORE QUALIFIED APPLICANTS.
5. HIGHER RENT PAID
6. TAKES BETTER CARE OF THE PROPERTY
7. HIGHER APPRAISAL OF PROPERTY
8. LESS OUTPUT FOR RENT READY WORK
9. SHORTER TIME ON RENT BOARD
10. LONGER THAN 12 MONTHS RENTAL